This is an emotional question, but it requires a logical answer. In any identity theft situation, you must file a police report. Once you do that, you let the police and everyone else know that a family member has robbed you of your identity. Without doing that, two things will happen. You will be responsible for those debts if you try to help the family member by paying them off and the negative consequences of those bad debts will appear on your credit report. While you may have an emotional attachment to the person who did this to you, it's better to be logical and protect yourself.